Flutter Entertainment is set to cut up to 1,400 jobs in its UK and Ireland operations, significantly affecting staff in Leeds and Dublin, just weeks into Dan Taylor's tenure as group CEO. This restructuring decision follows a steep rise in remote gaming duties, which jumped from 21% to 40% in April, and a scheduled increase in remote betting duties from 15% to 25% in April 2027. Flutter anticipates these adjustments will impact its adjusted EBITDA by $540 million in 2027.
Kevin Harrington, the CEO of Flutter UK & Ireland, emphasized the profound effect these tax increases have had on the economic models of regulated operators. He stated that the drastic nature of the job cuts is a direct result of the increased tax burdens. "As we warned a year ago, we cannot fully absorb a rise of this magnitude without reducing our fixed cost base and therefore must restructure our business so that we can best position ourselves for the future," Harrington explained.
Reports indicate that more than 450 jobs in Leeds, where around 1,700 employees work, are at risk, although not all roles are expected to be eliminated. Additionally, approximately 240 positions are threatened in Dublin at the Clonskeagh headquarters, which has 1,770 employees. Staff affected will come from various departments, including finance, HR, technology, training, and legal, with voluntary redundancy options being offered.
The offshore teams are also facing cuts. Betfair Romania Development is reportedly looking to let go about 300 staff in its UK and Ireland teams stationed in Cluj-Napoca. Business consultant Doru Șupeală has warned that the potential job losses could range from 350 to 400 if voluntary departures do not meet expectations. Staff in the Porto office will also be impacted.
With up to 1,400 roles at risk, Flutter becomes the largest operator to initiate cuts as the UK gaming sector deals with a significant tax reform. The current job losses represent nearly 16% of Flutter’s 9,000-person UK and Ireland workforce. The retail side of the business is not included in this round of cuts. Last month, Flutter announced plans to close up to 100 Paddy Power shops, risking 400 additional jobs. However, individual betting shops in Ireland will not be affected by these recent layoffs.
Taylor, who took over from Peter Jackson on October 1, comes from a background of managing Flutter’s international division and previously led Paddy Power Betfair from 2018 to 2020. His first major action sees a contraction in Flutter's core markets, coinciding with a considerable decrease in the company's share price, which has fallen over 65% in the past year. The group is also facing fierce competition from prediction markets like Kalshi and Polymarket, while Brazil has temporarily halted online betting.
Harrington reassured that supporting employees through this difficult transition is a priority. He reiterated the company's inability to absorb the current tax increase without reevaluating its costs. As the largest operator in the UK market, Flutter aims to fortify its position against market share losses.
This restructuring will cost Flutter an estimated $80-$90 million (€70-€80 million), expected to be logged in Q4 of 2026. Flutter believes that this move will ultimately safeguard its customer service investments.
These job cuts are announced just ahead of the UK's budget, where there's speculation regarding a potential increase in machine games duty, possibly doubling to 40%. A group of 90 Labour MPs has urged the Chancellor for a higher rate on Category B gaming machines. Grainne Hurst, CEO of the Betting and Gaming Council, called the redundancies "another devastating blow to workers and families across our sector" and urged the government to consider the damage already inflicted on the regulated sector before implementing new tax increases. Several other companies, including Bet365, Betfred, and Evoke, have also reduced their workforce or closed shops in response to higher duty costs this year.
